The Bank of Mexico (Banxico) on Wednesday showed greater optimism in the country’s economic recovery and expects a rebound of up to 7% in Gross Domestic Product (GDP) for this year, after the economy contracted 8.5% in 2020 by the coronavirus pandemic.
In its quarterly report, the central bank estimated that the Mexican economy will have a growth range of between 5% and 7%, with 6% being the central scenario.
“The central forecast for 2021 reflects both a better performance of the economy in the first quarter of the year compared to previously anticipated, and the expectation that from the second quarter the gradual recovery will present itself at a higher rate. This is due to the effect of the strength of external demand, particularly in view of the large fiscal stimulus granted in the United States “, highlighted Banxico.
By 2022, Banxico estimates that the economy will grow between 2% and 4%.
The central bank estimates a job creation registered with the IMSS of between 350,000 and 570,000 jobs for this year. Previous estimates were at least 250,000 jobs.
For 2022, a variation of between 390,000 and 590,000 jobs is expected, the same range expected in the previous quarterly report.
Despite the good news in terms of jobs and the economy, inflation will continue to be the central bank’s challenge. Banxico estimates that it will close at 4.8% in 2021 due to supply shocks as well as pressure on the prices of agricultural products and energy.
The governor of Banxico said that the high levels of inflation will be temporary.
